Wednesday, December 5, 2012

Operations Management | Operations Management and Importance

Define
operations management and briefly discuss the importance of this management
process.

Answer

The term
operations management refers to the design, operation, and control of the
transformation process that converts such resources as labor and raw materials
into goods and services that are sold to customers. The system takes in
inputs—people, technology, capital, equipment, materials, and information—and
transforms them through various processes, procedures, and work activities into
finished goods and services. Marketing, finance, research and development,
human resources, and accounting convert inputs into outputs such as sales,
increased market share, high rates of return on capital, new and innovative
products, motivated and committed employees, and accounting reports. Operations
management is important because it encompasses both services and manufacturing,
it’s important in effectively and efficiently managing productivity, and it
plays a strategic role in an organization’s competitive success.